BLUMAR SEES GOOD POTENTIAL IN JACK MACKEREL FISHERY

Blumar sees good potential in jack mackerel fishery. In its quarterly results delivery, Chilean fisheries and aquaculture company Blumar reported a sustained growth in its profits during the second quarter, reaching US$ 26.6 million, which represents a positive variation of 24.1% compared to the same period of the previous year. With this, the company almost doubled its profits during the first half of 2022, going from US$24.1 million in 2021 to US$44 million, which means a growth of 83%.

Consolidated revenues so far this year show a positive variation, reaching US$ 334.8 million, where sales growth was driven by a 13% increase in the fishing segment. Likewise, in the analysis of the sales mix, Blumar realised that the aquaculture business represented 52% of revenues, while the fishing area 48%.

“The results show that both the fishing and salmon areas are meeting their objectives and that our products are attracting consumers from various markets, reflecting that the link between our sustainability and business strategies has been successful. The innovations that we have developed in the aquaculture segment and the focus on the recovery of horse mackerel have allowed us to have a solid proposal that adapts to the demands of consumers”, explained the general manager of Blumar, Gerardo Balbontín.

Blumar has contributed to the improvement of the jack mackerel fishery, which in 2010 was overexploited. Thanks to the measures adopted by the company and the incorporation of a scientific and precautionary approach to define the catches, through the fishery administration of the resource, mainly through the Regional Organisation of the South Pacific ORP, the horse mackerel recovered to a state of Full Exploitation, which has allowed the global share to increase by 15% per year since 2020 and with a similar expectation for 2023.

The foregoing favoured the company being able to report an increase in sales in the fishing segment and has allowed 86% of horse mackerel fishing to be destined for human consumption, with Africa being its main destination.

“Jack mackerel represents 16% of our income and we believe there is a very relevant potential market, which is why this year we certified the chain of custody of this fish under the international MSC standard, which allows us to enter, for example, the European market,” Balbontin said.

As restrictions stemming from the pandemic have eased, the company’s aquaculture segment has also been recovering. The foregoing, given that the main marketing channels, such as hotels and restaurants, have been reactivating, which, together with an increase in prices in international markets, have allowed a recovery in the figures of this business compared to recent years.

“We want to continue growing by exporting world-standard and sustainable salmon, which is why we recently launched the Laguna Blanca line, which is a salmon produced in Magallanes, without the use of antibiotics in the production cycle, which is added to our other our own delivery brand, Oshen Salmón, and that together allow us to serve the delivery segment of demanding markets with products with a high standard of sustainability,” said the executive.

Margin growth and EBITDA

The pre-adjusted fair value EBITDA also registered growth in the second quarter, since with US$ 51.8 million it registered a growth of 26% compared to the same quarter of the previous year. With this, the indicator reached US$ 81.8 million during the first semester, which means a growth of 62% compared to 2021, with the fishing segment showing the greatest contribution with US$ 62 million, which represents almost one 76% of the total.

On the other hand, the fishing and salmon company also registered a 55% growth in gross margins, reaching US$ 103.6 million, which reflects better performance and efficiency in both segments.

“During this year, we have managed to resume growth after a period of pandemic that challenged us in different ways. Today, we see greater dynamism in the main destination markets, and the offer we have for them, through healthy and sustainable products, allows us to take better advantage of this moment and prepare ourselves for periods of greater complexity”, pointed out the general manager de Blumar, Gerardo Balbontin.

Photo credit; Blumar

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